One in five mobile phones shipped abroad is fake


According to a new OECD report, nearly one in five mobile phones and one in four video game consoles shipped internationally is fake.

Trade in Counterfeit ICT Goods shows that smartphone batteries, chargers, memory cards, magnetic strip cards, solid state and music players are also increasing g falling prey to counterfeiters. On average, 6.5% o global trade in ICT goods is in counterfeit products. That is well above the 2.5% of overall traded goods found to be fake in a 2016 report.


Counterfeit ICT goods cause health and safety risks, service outages and loss of income for companies and governments. China is the main source of fake ICT goods and the U.S. manufacturers are the most hit by lost revenue and erosion of brand value. Almost 43% counterfeit ICT infringe the IP rights of US companies follow by Finnish and Japanese companies.

Counterfeit goods are goods that infringe on trade marks. In an industry that relies heavily on the property, counterfeit ICT goods harm consumers’ trust in well-known brands and pose risks to health, safety and the privacy of the customer. Fake phones have more toxic substances such as lead and cadmium, while fake phone chargers can cause fires and electric shocks. Intermediate ICT equipment and components, including transistors, power amplifiers, and antenna towers are also being shipped to consumers.

The report predicts that global trade in counterfeit ICT goods will be about $ 143 billion in 2013 based on data from nearly half a million customs seized goods during 2011-2013. Nearly two thirds ICT fake shipments by courier and postal services are worthy of complicating the screening and monitoring process.

The ICT sector accounts for 5.5% of the total value added in the OECD region in 2013, equivalent to about $ 2.4 trillion. World exports of manufactured ICT goods grew by 6% between 2001 and 2013 to 1.6 trillion, with China’s exports accounting for one-third of total exports.

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